News Headlines
- Saylor signals Strategy’s new Bitcoin purchase after a 1-week break.
- Montana’s Bitcoin Reserve bill fails to pass second reading.
- Franklin Templeton launches Bitcoin and Ether Index.
- Lazarus Group Pulled off Largest Digital Asset Heist in History.
Price Action
Bitcoin’s price continues to operate in the range it has been in since Q4 last year.
Currently, $BTC is at $95,476.
Range support is at $91,859, with resistance around $100,000.
Figure 1: $BTC sideways price action.
Price is essentially flat over the past week, down just -0.53%.
Figure 2: Price at similar level to last week.
This ongoing sideways price action is resulting in a drop in Bitcoin’s near-term volatility.
Bitcoin’s 1-month rolling volatility is now at just 1.76%. A level not seen since July 2024.
Figure 3: Bitcoin 1 month volatility is dropping.
In a bull run, such drops are typically followed by upside breakouts, as we saw in Q3 last year. Let’s see if the same happens as we move deeper into Q1 2025.
The Big Story: Michael Saylor Hints at New Bitcoin Acquisition as Strategy Raises $2 Billion for Future Buys
Michael Saylor, co-founder of Strategy (formerly MicroStrategy), has hinted at another significant Bitcoin purchase after a brief pause in acquisitions in a recent post on X.
The timing of Saylor’s post is particularly noteworthy, as it follows Strategy’s recent announcement of a $2 billion convertible senior note offering. The notes, which carry 0% interest and mature in 2030, are intended for general corporate purposes, with Bitcoin acquisitions being a primary focus.
Strategy’s Expanding Bitcoin Holdings
As of now, Strategy holds 478,740 BTC, valued at approximately $46 billion at current market prices.
The scale of their purchasing relative to other publicly traded companies holding bitcoin can be seen in the table below. Strategy holds more than 10 times the number of bitcoin.
Figure 4: Strategy holds 478,740 bitcoin.
The latest purchase occurred in the week ending February 9, when it acquired 7,633 BTC for over $742 million at an average price of $97,255 per coin.
The firm has invested $31 billion in Bitcoin at an average price of $65,000 per BTC, resulting in nearly $15 billion in unrealized gains. With an additional $4 billion in Class A common stock available for sale, Strategy remains well-positioned to continue financing future Bitcoin acquisitions.
Institutional Support and Growing Exposure
Despite skepticism surrounding its aggressive Bitcoin-first approach, Strategy continues to attract significant institutional interest. On February 6, an SEC filing revealed that BlackRock, the world's largest asset manager with $11.6 trillion in assets, had increased its stake in Strategy to 5%. This move came just a day after the company completed its rebranding and strategic shift toward a Bitcoin-focused marketing approach.
Beyond Wall Street, government entities across 12 U.S. states, including California, Texas, Florida, and Illinois, hold shares of Strategy as part of pension and treasury funds. This broad institutional backing reflects growing confidence in Strategy’s business model, despite the risks associated with its aggressive Bitcoin strategy.
The Road Ahead
Saylor has previously stated that Strategy intends to expand its use of "intelligent leverage" in Q1 2025 to fund additional Bitcoin purchases. With a fresh $2 billion capital raise, continued institutional interest, and a history of bold acquisitions, Strategy is poised to further cement its position as the largest corporate holder of Bitcoin.
While critics question the sustainability of this approach, Strategy’s unwavering commitment to Bitcoin, backed by strategic financing and institutional support, suggests the company remains confident in the long-term value of its holdings.
Live Chart Review: Bitcoin Relative Growth
Figure 5: Bitcoin performance versus other major assets.
This live chart allows the user to select a timeframe from a drop-down menu on the Bitcoin Magazine Pro platform and track Bitcoin’s performance relative to other assets over that timeframe.
Over the past 2 years, the timeframe shown on the chart above, Bitcoin has significantly outperformed the other assets listed:
Bitcoin: +319%
Tesla: +71%
Apple: +68%
S&P: +54%
Dow Jones Index: +34%
This interactive chart is available to Bitcoin Magazine Pro platform subscribers. Subscribe here.
The Bitcoin Magazine Pro Team.